For the transaction of borrowing costs, we just have to minus 100 from the finance cost of cyclip right ? Do we have to adjust this in the Retained earnings of the subsidiary ?
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Consolidated co accounts june 2015
Why for the FV of net assets in S table , we dont have to deduct the FV adj of an increase in depreciation 360 ?
10y ago#2"For the transaction of borrowing costs, we just have to minus 100 from the finance cost of cyclip right ? Do we have to adjust this in the Retained earnings of the subsidiary ?"
That 100,000 borrowing cost has been expensed in arriving at the 2,400 profit for the year.
If it hadn't been, the profit figure would have been 2,500
And it's that 2,500 that needs to be time-apportioned into 3 months pre-acquisition and 9 months post-acquisition
"Why for the FV of net assets in S table , we dont have to deduct the FV adj of an increase in depreciation 360 ?"
In the expression "FV of net assets in S table" are you referring to the fair value of S net assets at date of acquisition? If so, that 360,000 additional depreciation relates only to the POST-acquisition period so you wouldn't expect to find it having an effect on the fair value of S net assets AS AT the date of acquisition
OK?
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